Assembly Bill 369 proposes the establishment of a nonrefundable state income and franchise tax credit for individuals who are eligible for the federal employer-provided child care credit. This state credit will be equal to the amount claimed under the federal credit, which allows for up to 25% of qualified expenditures related to child care facilities and 10% for resource and referral expenditures, with a maximum credit of $150,000. The bill also stipulates that if a claimant is required to repay any portion of the federal credit due to the cessation of operations of a child care facility within ten years, they must similarly repay the state an equivalent amount.

The bill amends several sections of the statutes to incorporate this new credit, including the addition of subsections that define the credit and outline the filing process and limitations. Notably, the credit cannot be claimed for expenditures related to child care facilities or services outside of Wisconsin. The bill also includes provisions for the administration of the credit, ensuring that it aligns with existing tax regulations. Key amendments include the insertion of new subsections in various sections of the statutes, specifically sections 71.07, 71.28, 71.47, and others, to facilitate the implementation of this tax credit.

Statutes affected:
Bill Text: 71.05(6)(a)15, 71.05, 71.21(4)(a), 71.21, 71.26(2)(a)4, 71.26, 71.34(1k)(g), 71.34, 71.45(2)(a)10, 71.45